Regression Analysis Was Applied Between Sales Data (Y in $1000s)

question 31

Multiple Choice

Regression analysis was applied between sales data (y in $1000s) and advertising data (x in $100s) and the following information was obtained. ​ = 12 + 1.8x
​
N = 17
SSR = 225
SSE = 75
Sb₁ = .2683
​
Based on the above estimated regression equation, if advertising is $3000, then the point estimate for sales (in dollars) is

• A) $66,000.
• B) $5412.
• C) $66.
• D) $17,400.

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Definitions:

Cash Flows

Cash flows represent the net amount of cash and cash-equivalents being transferred into and out of a business, crucial for assessing its financial health, liquidity, and solvency.

Hedge

A strategy used in investing to minimize or offset the risk of adverse price movements in an asset.

Hedge Position

An investment made to reduce the risk of adverse price movements in an asset, often by taking an offsetting position in a related security.

Market Price

The market price is the current price at which an asset or service can be bought or sold.